In this tremendous bull market in precious metals, the question of "when to buy" is not the controlling issue. Since the bull market's inception in 2001, no one has lost money by buying at the wrong time - but scores of investors have lost their shirts by selling at the wrong time!
This uncertainty trap is very easy to fall into, especially when a cacophony of different voices are all screaming from every direction: "Sell!!" "Buy!!" "Don't hold but trade!!" "Buy gold stocks!!" Buy silver stocks!!" "Buy rare coins!!" -- etc., etc.
I have been writing and warning investors about this for more than four years now, with excellent results. Here is how one subscriber put it:
For roughly two and a half of those years, from January of 2005 until only this past summer in 2007, the dollar has enjoyed a temporary reprieve from the euro's onslaught.
But that was then.
The dollar's extended dead-cat bounce is now over. In September of 2007, the dollar fell through its all-time "floor" of 80 points on the US Dollar Index. Now, there is very little left that holds it up. Because of the Euro vs Dollar war, whatever little support is still has will also disappear - shortly. (Update: this prediction, written in October of 2007, has come true on February 28, 2008!)
As far as dead cats go, the dollar bounced pretty good during that time, but in the end it still succumbed to its three primary weaknesses:The loss of its international gold-backing when Nixon closed the US 'gold-window' back in 1971.
|Hi. I am Alex Wallenwein, and I'm the owner of the Small Business Goldmine, a brand new website designed to provide small business owners with the tools and resources to succeed, even in a steep recession, by accepting payments in appreciating gold and silver currency alongside depreciating dollars.|
The Small Business Goldmine is also the new home of the Euro vs. Dollar Gold Monitor (formerly hosted on "A1 Guide to Gold Investments.com"). Since its launch in April of 2003, the 'Monitor' has served as an online financial newsletter and investment advisory designed to help individuals and businesses protect themselves from the ongoing dollar-collapse.
Owners of businesses are the most in need of the information provided by each Monitor issue. Small Business is the backbone of America - and America is under fire because her currency, the dollars you earn every day, is crumbling -- and it is crumbling very fast.
I hold a B.A. degree in Economics and a law degree. My forte is research. In late 1996, I began to research how money is used by some to exert political and economic control over others' lives. In the process, I discovered that gold (along with silver) is the common man's antidote to this effort. In writing and publishing the Euro vs Dollar Monitor, I explain the dynamics of this process and how individuals can harness the power of gold in their efforts to regain their political and financial autonomy.
This temporary reprieve has been a tremendous help to the euro and constituted essentially "bad news" to the dollar. This is so because it has allowed the markets of China, Japan, and the other Pacific Rim countries to become much less dependent on exporting to the US, more interdependent among themselves, and therfore more self-sufficient.
They are happy just trading with each other and the euro-zone countries.
Meanwhile, the euro's proliferation around the world has quietly spread without running the risk of suddenly becoming too expensive relative to the dollar. If it had, that would have seriously impaired the EU countries' export competitiveness.
Now, however, EU countries have stabilized and rebounded economically from a long stint of sub-par performance. They are now actually doing better than the US.
Many contrarian investment analysts expect the dollar to rebound now (or soon) because of the contrarian maxim that, when everybody is bearish on a certain investment, it's "time to buy."
In order for that maxim to ratchet 'into gear', however, there needs to be another sprocket somewhere that it can actually bite into.
Unfortunately, that sprocket is now gone.
The 'sprocket' I am talking about is world dollar-demand. Since more and more oil-producing countries are switching from dollars to euros, dollar-demand is dwindling rapidly. Worst of all, Saudi Arabia herself (the original oil-producer that first agreed to take only dollars for oil after the dollar lost its last gold backing in 1971), is showing signs of wanting to abandon the dollar.
On October 3, 2007, the Saudis refused to match the US Fed's 50% rate cut, showing a desire to go off the dollar-peg. In the past, such moves have preceded other oil nations' switching away from the dollar. In fact, the Saudis can no longer afford to peg their currency to the falling dollar because it causes price inflation by making foreign products (on which they depend because they produce little, other than oil) too expensive for them.
With its oil backing largely gone, and no gold backing since '71,and the competition from the euro, and the outrageous trade deficit, and now the US subprime mortgage-induced worldwide credit crunch, there is little reason for other nations to keep using the dollar for settling their trade accounts.
In economics, lower demand always means lower value - in this case forex (foreign exchange) value.
That's where we are today.
Where Will It Go From Here?Although time lines can always be extended (by 'official intervention', also known as i>overt manipulation), the likely effect of the dollar's decline on the US economy is dire - and severe.
The dollar is currently in uncharted territory. It has never been below the USD Index's 80-mark in its entire history. At the time of this writing, the dollar has remained below that mark for six full months!
How low is too low?
How far of a decline is too far?
Is there a point at which the US economy will simply crumble as a result?
There are no commonly accepted standards or measures for this situation. We can, however, at least speculate with a certain amount of probability jut by thinking things through according to the 'laws' of economics.
Wars, domestic and international political, economic, or financial monetary events can significantly influence the outcome. That's why it is absolutely imperative that investors and business owners get the kind of weekly and up-to-the-minute updates and advance warnings the Euro vs Dollar Monitor provides.
The Life BoatFortunately, individuals are not without a remedy, a fall-back solution that can shield them from the most radioactive fallout from the ongoing and mounting currency crisis.
That fall-back position is our present ability to invest in precious metals and related securities.
They function as a perfect 'lifeboat' because they have a powerful tendency to rise as everything else (fiat money-based paper assets) sinks in value.
The reason for that stems from their well-known quality of having what is called "intrinsic" value. That means the value (i.e., utility to people) of precious metals as a store of wealth is unparalleled in human history.
Even Alan Greenspan, the master-deceiver of the monetary elites, has acknowledged that gold is and remains the ultimate form of payment. Everything else is essentially a placeholder, a substitute of convenience.
If you are new to this subject, it is important to understand the origin of fiat-money, how it came about, and how clever bankers figured out that they could vastly increase their influence over the world's political rulers by becoming their creditors. Fiat money (currency denuded of all precious metals backing and essentially created through debt, which is the opposite of value) can be created at will, out of thin air.
By persuading (some would say bribing) political leaders to turn the currency-creation and valuation process over to them in return for the leaders' unlimited ability to borrow), bankers caused leaders to become beholden to them and their interests. It really is no more complicated than that.
Today's worldwide fiat system is the end result of a continuous and systematic subversion of all true value by the world's monetary authorities. Their biggest enemy is therefore actual value (in the form of precious metals), held by the masses of individuals, and circulating freely as currency to compete with the bankers' own debt creation.
Historically, we are getting very close to the end of the life cycle of a purely debt-based worldwide monetary system controlled by the issuing authorities - the world's central banks.
These central bankers have built a splendid vessel that has controlled the world's financial waters for decades now. It is the very best modern technology, human savvy, and know-how are capable of producing - but it has hit an iceberg.
That 'iceberg' is the fact that in spite of the bankers' best intentions, true value - gold and silver - continue to exist and provide a reminder to all participants that debt can only pose as value. It can never become value, even if the law decrees that it shall be used as payment for debt.
Debt - As Payment for Debt?A dollar bill (or any fiat currency, whether in coin, paper, or electronic form) is nothing but evidence of a debt. A dollar bill is called a 'bank note' (or federal reserve note) for a reason:
A 'note' is a written instrument that evidences a debt and constitutes a promise to repay.
The problem is that the very fact that the law (the legal tender laws of the United States, in the dollar's case) has decreed that this instrument of debt shall be accepted as "legal tender for all debts, public and private."
A dollar, in turn, is created in one of three ways:
- By outright printing initiated by the Federal Reserve;
- By loaning it into existence when a bank makes a loan to an individual and creates a "credit" on the individual's account (checking deposits are automatically counted as part of the money supply); or
- By Congress borrowing dollars from the federal reserve in return for Treasury bills, notes, or bonds, which the Fed then proceeds to "monetize" by printing the requisite amount of dollars.
As a result, dollars (which are evidence of debt) must be loaned into existence in order to "pay" previously existing debt, thus piling debt upon debt in a seemingly endless inverted-pyramid fashion.
Well, as you know, inverted pyramids can't stand on their own. They must be held up. That which has held up the dollar-pyramid was oil - and oil is now migrating to the euro.
The problem is that the euro is also just evidence of a debt. The volume of dollars now circulating in the world must eventually be replaced by euros if the world is to continue to function - and that will put the euro into the same dire straits as those the dollar is now in. That is the fiat-Titanic's iceberg.
(Knowing When, and How, and What to Invest in - and Why!)Knowing that gold and silver can be your lifeboat in this turbulent sea of debt is great - but you also need to know how to use it, how much of your wealth you should put into gold, what forms of gold investments are safer than others and why and, most importantly,you must know when to hold onto it and when to sell it.
These are the questions that Euro vs Dollar Monitor subscribers are continually informed on.
The monthly Monitor Issues provide the big picture of recent developments and puts all of them into context.
The Weekly Updates on the price movements in gold, silver, oil, and US treasuries (which determine interest rates) keep your eye closely trained on crucial developments.
Finally, intermittent E-Mail Alerts bring you breaking news on financial, monetary, economic, and political developments that simply can't wait and need to be transmitted immediately.
Occasionally Monitor Subscribers will also receive other E-Mail Updates on not-so-crucial but highly revealing and interesting subject.
Monitor Issues are published on this website during the first two days of each month. As a subscriber, you will receive your monthly password as each issue is published. The Weekly Updates are then added by Sunday of each week and can be accessed via the same password.
Only current subscribers will receive the E-Mail Updates and Alerts.
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Upon your verification of your subscription payment, you will also receive two extremely useful and valuable bonuses:
- The e-book "Euro vs. Dollar - The War on Your Wallet" (a $25.00 value), and
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In either case, the two bonus volumes are yours to keep, no matter what. In other words: You just can't lose by becoming a member of the Monitor family of investors!
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I am looking forward to welcoming you as new family member.
All the Best,
The EURO VS DOLLAR GOLD MONITOR